Use T-accounts to show the effect on the Feds balance sheet of the Fed buying $2 billion

Question:

Use T-accounts to show the effect on the Fed’s balance sheet of the Fed buying $2 billion in German government bonds, denominated in euros, and, at the same time, conducting an open market sale of $2 billion of U.S. Treasury securities. What happens to the monetary base? Briefly explain whether this is a sterilized foreign exchange intervention or an unsterilized foreign exchange intervention.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...